Ascot welcomes new shareholder

 ASX-listed Ascot Resources has welcomed a A$1-million investment from mineral processing and infrastructure provider Sedgman.

Ascot said on Monday that the investment marked the start of a strategic relationship between the two companies to explore opportunities to grow their respective businesses in Colombia, and in South America generally.

Under the investment agreement, Sedgman would subscribe for five-million shares in Ascot, at 10c a share for the first A$500 000 placement. The second tranche of the investment would be made by way of a two-year unsecured loan note.

On completion of the note issue, Sedgman would become Ascot’s largest shareholder, having a 13.8% shareholding in the company. As a result, Sedgman would be allowed to nominate a director to the Ascot board.

“Sedgman’s investment marks the beginning of a strategic relationship between our companies and represents a significant endorsement of the company’s Titiribi coal project,” said Ascot executive chairperson Andrew Caruso.

He added that despite the recent weakness in the global resources sector and the challenging market conditions currently faced by juniors, the company’s advancement in delivering a maiden resource at Titiribi had added considerable value to shareholders.

“With capital availability in the mining sector being restricted, particularly at the junior end, Ascot’s success in securing another tranche of funding is testament to the quality of the Titiribi coal project,” said Caruso.